Segment Information

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Information

9. SEGMENT INFORMATION

The Company’s revenues are derived from sales of its Enterprise division products which include its Desktop Solutions, Datacenter and Cloud Solutions and related technical services and from sales of its Online Services division's web collaboration, connectivity, remote support and data sharing products. The Enterprise division and the Online Services division constitute the Company’s two reportable segments.

The Company does not engage in intercompany revenue transfers between segments. The Company’s chief operating decision maker (“CODM”) evaluates the Company’s performance based primarily on profitability from its Enterprise division products and Online Services division products. Segment profit for each segment includes certain research and development, sales, marketing and services and general and administrative expenses directly attributable to the segment as well as other corporate costs allocated to the segment and excludes certain expenses that are managed outside of the reportable segments. Costs excluded from segment profit primarily consist of certain restructuring charges, stock-based compensation costs, amortization of product related intangible assets, amortization of other intangible assets, net interest and other income, net. Accounting policies of the Company’s segments are the same as its consolidated accounting policies. In the first quarter of 2012, the Company moved the business acquired in its recent acquisition of ShareFile from its Enterprise division to its Online Services division.

Net revenues and segment profit, classified by the Company’s two reportable segments were as follows (in thousands):

	Three Months Ended
	March 31,
	2012			2011
Net revenues:
Enterprise division	$	468,762		$	391,116
Online Services division	120,733			99,772
Consolidated	$	589,495		$	490,888
Segment profit:
Enterprise division	$	117,173		$	100,449
Online Services division	21,136			14,550
Unallocated expenses (1):
Amortization of intangible assets	(27,002		)	(16,208		)
Restructuring	—			(24		)
Net interest and other income	3,800			7,572
Stock-based compensation	(30,557		)	(17,884		)
Consolidated income before income taxes	$	84,550		$	88,455

(1) Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments.

Revenues by Product Grouping

Revenues by product grouping for the Company’s Enterprise division and Online Services division were as follows (in thousands):

	Three Months Ended
	March 31,
	2012		2011
Net revenues:
Enterprise division
Desktop Solutions revenues(1)	$	338,120	$	289,116
Datacenter and Cloud Solutions revenues(2)	99,673		77,667
Professional services(3)	25,873		19,478
Other	5,096		4,855
Total Enterprise division revenues	468,762		391,116
Online Services division revenues	120,733		99,772
Total net revenues	$	589,495	$	490,888

(1) Desktop Solutions revenues are primarily comprised of sales from the Company’s desktop virtualization product, XenDesktop, and the Company’s application virtualization product, XenApp, and related license updates and technical support.

(2) Datacenter and Cloud Solutions revenues are primarily comprised of sales from the Company’s cloud networking products, which include NetScaler, Branch Repeater and Access Gateway, and the Company’s CloudPlatform products which include XenServer, CloudStack and CloudPortal and related license updates and maintenance.

(3) Professional services revenues are primarily comprised of revenues from consulting services and product training and certification.

Revenues by Geographic Location

The following table presents revenues by segment and geographic location, for the following periods (in thousands):

	Three Months Ended
	March 31,
	2012		2011
Net revenues:
Enterprise division
Americas	$	252,483	$	217,472
EMEA	160,071		133,373
Asia-Pacific	56,208		40,271
Total Enterprise division revenues	468,762		391,116
Online Services division
Americas	103,227		88,290
EMEA	14,455		9,287
Asia-Pacific	3,051		2,195
Total Online Services division revenues	120,733		99,772
Total net revenues	$	589,495	$	490,888